Cryptocurrencies are recording their biggest gains in weeks after the president of the European Central Bank shrugged off talk of a ban.
Bitcoin was up more than 7% in early trading Wednesday, gaining over $400 and adding $7.7 billion in market capitalization. In the past week, Bitcoin’s value has bounced back from recent turbulence, adding over $1,100 in value and over $19 billion in market cap.
While European banking officials warned consumers about the highly volatile nature of Bitcoin, Ethereum, Ripple and other cryptocurrencies, Mario Draghi, president of the European Central Bank, said in a video response to user submitted questions that no ban or regulation was forthcoming.
‘Many of you posted questions about whether the ECB is going to ban Bitcoins or it’s going to regulate Bitcoins,” he said. ‘I have to say it’s not the ECB’s responsibility to do that.’
Traders had worried that officials would impose regulations on the currency after the head of the head of the World Bank compared cryptocurrencies to “Ponzi schemes” last week.
Bitcoin and other digital currencies aren’t out of the woods yet, though. While the ECB isn’t planning any new rules, French Finance Minister Bruno Le Maire said in December he will ask his counterparts in the Group of 20 nations to consider joint regulation of bitcoin. That group is scheduled to meet in March.
Bitcoin recorded the biggest gains on the news, but all major cryptocurrencies saw their value increase. Ethereum was up 5.8% just before 9am ET, Ripple eked out a 4% gain. The biggest winner of the morning, though, was Litecoin, which soared 38%.
As of 9:00am ET, Bitcoin was trading for $9,288